The ten-storey building, with a gross development value (GDV) of £37.6m, will stay as a mixed office and retail asset.
MCR Property Group has acquired Headrow House, the former Direct Line headquarters at 42 The Headrow in central Leeds.
The 10-storey building, with a gross development value (GDV) of £37.6m, will stay as a mixed office and retail asset.
MCR plans a full refurbishment and aims to bring the vacant upper floors back into use soon.
Direct Line occupied the upper floors until 2021.
Planning permission was granted in January 2025 for conversion of the upper floors into 230 co-living homes, but MCR does not plan to use the residential consent.
Floors one to seven will offer leased office space for larger businesses, while floors eight and nine will provide serviced offices for smaller and growing companies.
Martin Brown, director of commercial property at MCR Property Group, said: “We are delighted to have secured Headrow House.
“It is a prominent building in an exceptional city centre location and an asset we believe has significant long term potential.
“We have seen some great traction in Leeds and across the wider region, which has strengthened our confidence in the city and its office market.”
Brown added: “Businesses are continuing to look for well located, professionally managed space that provides quality, flexibility and value.
“The existing residential planning consent gives the building flexibility, but our strategy is to retain and invest in its established office use.
“We will be moving ahead with a comprehensive refurbishment programme as soon as possible, bringing the upper floors back into active occupation.”
He said: “Floors one to seven will provide leased accommodation for larger occupiers, while floors eight and nine will offer flexible, serviced offices.
“The ground floor will remain in retail use, preserving activity at street level and ensuring the building continues to contribute to The Headrow.
“Headrow House will also become part of a new workspace brand platform that we are developing across our portfolio.”
He added: “Our aim is to create a recognisable and consistent proposition that can support businesses from their first serviced office through to larger, independently leased headquarters space.”